Jakarta-headquartered insurtech startup PasarPolis announced today that it has secured USD 5 million equity funding from World Bank Group’s member International Finance Corporation (IFC).
IFC is the largest global development institution focused exclusively on the private sector, according to the World Bank. It provides direct investments, loans, and advisory services to stimulate the private sector in developing countries. PasarPolis represents the first investment by IFC in an Indonesian insurtech platform.
PasarPolis CEO and founder Cleosent Randing said that the firm will focus on product development and market expansion. “We’re also going to increase our product offerings to better serve our customers,” he added in a virtual press conference.
The firm looks to increase its agent network in foreign markets, with Vietnam and Thailand as the main focus. “Vietnam and Indonesia share the same criteria for the insurance market, although Vietnam has lower awareness. Thailand is a quite mature market for insurance with a higher penetration rate,” Randing explained.
PasarPolis offers over 80 micro and modular insurance products on its platform, including insurance for damaged products or missing items for small and medium-sized enterprises (SMEs) and e-commerce customers, and travel insurance for delayed flights or trains, lost baggage, or accidents, among others. PasarPolis is exploring other possibilities such as micro health insurance, and vehicle insurance products.
Last year, PasarPolis inked a partnership with ride-hailing app Gojek to provide accident coverage for drivers and passengers. Randing said that there are “hundreds of thousands” Gojek drivers already registered as customers.
Founded in 2015 by Randing and Michael Saputra, the company has served more than 30 million customers in Indonesia, with 90% of them being first-time insurance buyers. It currently has 30 insurance companies and 25 digital partners on board. The company bagged USD 54 million in a Series B round from Alpha JWC Ventures, LeapFrog Investments, and Xiaomi, among other investors, in September 2020.